Summary – Oxford Capital Solar EIS II

 

Oxford Capital is pleased to introduce to you the NEW Oxford Capital Solar EIS II. For further information or an Information Memorandum please contact James Faulkner or John Gale on 01865 860 760 or email solar@oxcp.com.

 

What is the target return?

  • Tax free 8% IRR (net) based on an exit in 4 years
  • Includes EIS income tax relief at 30% of amount invested

 

Why Oxford Capital?

  • EIS Fund Manager of the Year 2010 - recognised industry leader with extensive EIS experience for over 12 years
  • Already completed investments in over 600 solar installations What is the investment?
  • Investing in shares in a special purpose solar company which has HMRC pre-clearance for EIS relief
  • The company will buy pre-installed solar assets which are already generating electricity and which will benefit from Feed in Tariffs (‘FITs’)
  • FITs are index linked for 25 years (thereby providing a hedge against inflation) and are backed by the UK Government
  • The investment will be managed by Oxford Capital and will be sold as soon after 3 years as possible (minimum EIS holding period) - probably to a financial institution How have key risks been reduced?
  • Investing only in pre-installed sites, using high quality German manufactured solar panels which are already generating electricity 
  • No site finding risk or planning risk o No installation / grid connection risk
  • 100% of expected energy output guaranteed
  • £10m worth of pre-installed sites already committed
  • No debt on acquisition - minimises the financial risk Why now?
  • A one-off opportunity to combine the benefits of FITs with EIS reliefs created by the Government
  • The window is only open until March 2012 (after which FIT rates will fall and EIS relief will no longer be available).

 

What is the fee structure?

  • 100% of fees and costs will be charged to the investee company – thereby enabling EIS relief to be claimed on the full subscription amount.
  • Investors o Initial fee 5% o Annual management fee 2%
  • Performance fee 50% gross capital gain of net profits

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